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Congressman Tom McClintock

Representing the 4th District of California

El Dorado Hills Chamber of Commerce Dinner

February 22, 2018

El Dorado Hills Chamber of Commerce Dinner
February 22, 2018

For years, I’ve only been able to report to you what we SHOULD be doing to revive the economy.  Today, FINALLY, I can report to you what we HAVE done – and THAT it is working.

On January 20th of last year, the war on business ended and the war on bureaucratic over-regulation began.

The unnecessary regulatory burdens imposed by the federal government alone are putting a $1.9 trillion drag on our economy – about 10 percent of our entire economic output.  I am pleased to report that between congressional and presidential action, we have repealed, withdrawn or delayed more than 1,500 regulatory acts.  The federal register, announcing new regulations, has shrunk by a third in one year.  Significant rules – costing $100 million or more – are down nearly 2/3.  This is a bigger regulatory roll-back than under Ronald Reagan.

And the economy is responding.  During the prior eight years, economic growth averaged just 1.5 percent – the first administration not to have three percent economic growth in any year since Herbert Hoover.  

Over the last four quarters, GDP growth has averaged 2.3 percent –nearly full percent greater, and is expected to be adjusted upward as figures are finalized.  The unemployment rate has fallen to its lowest level in 17 years.  The African American unemployment rate is at its lowest point EVER.  Despite recent corrections, the Dow Jones is up 40 percent since Election Day.

And all that is before the tax relief bill kicked in.  In the brief time since the bill became law:

•The small business confidence index has registered its largest jump ever and is now at a record high.  

•The Consumer Confidence Index jumped two points in January, holding at a 17-year high.  

•At least four million Americans have received $3 billion in bonuses, averaging $750 per family.  

•That’s on top of increased family take-home pay due to the tax cuts that average more than $1,900 per family right here in the fourth Congressional district.  

•Thousands of companies have announced wage and benefit increases on top of this.  

•Billions of dollars of capital stranded off shore are coming home – last month, Apple announced it was making $350 billion in new investment in the American economy as a direct result of the tax relief.  

•In 38 states, including California, utilities have announced rate reductions adding to Americans’ disposable income.

In the first month since the tax cut became law, federal tax revenues are UP – not DOWN – reflecting the economic growth we see across the country.

Right here, the CEO of a local freight company told me last week that his shipment of manufactured goods has exploded since January – which he attributes entirely to the business expensing provisions of the tax bill.  The CEO of a local pharmaceutical company told me they have to ship their chemicals to Ireland to competitively manufacture their final product – but that the corporate tax changes will mean production can return to the United States.  

Freedom works.  And we are putting it back to work.  I remember the Reagan years – as do many of you.  When the economy reached four or five percent growth, you could feel it in the air.  There was a palpable optimism everywhere you went – wages kept rising, jobs were plentiful, people were happy.  It wasn’t just prosperity – it was an ATTITUDE that America was back – that it was morning again for our country.  

Then, as now, these pro-growth policies produced a ferocious ideological backlash among people who just don’t understand these time-proven economic principles.  But the naysayers soon faded away as prosperity returned.  

Sure, our progress could be undermined by bad state policies, or a failure to control federal spending, or a new tariff war, or bad monetary policy from the Fed or if Congress should fail to make these tax cuts permanent. 

But I am confident that enough people are already feeling the effect of these new policies in their own lives that they won’t let that happen – and in the days ahead, we will be able to build on the progress that is now opening up a new American decade of growth, prosperity, optimism and strength.